ONTINUANCE OF FACILITIES IN CERTAIN STATE INSTITUTIONS
List of Training Institution/Centres
1. Sri Krishna Institute of Public Administration.
2. Police Training College.
3. Bihar Institute of Rural Development.
4. Village Handicrafts Training Centre.
5. Tribal Village Handicraft Training Centres.
6. Training-cum-Production Centres for Toys, Ceramic Goods, Embroidery and Applique,
Hornmade goods and Cutting and Tailoring.
7. Ideal Woodwork Workshops/Iron Workshops.
8. Indo Danish Tool Room and Training Centre, Jamshedpur.
9. All Gove..nment Industrial Institutes
-Affiliated with N.C.V:T.
-Un-affiliated.10.
All Private Industrial Institutes "jl ;,,1 ."If ) !
-Affiliated with N.C.V.T. ;
-Un-affiliated.
11. B.I.T., Sindri. ...)12.
R.I. T., Jamshedpur.13.
Government Polytechnic, Dhanbad.
14. Government Polytechnic, Ranchi.15.
Government Polytechnic, Adityapur.
16. Government Polytechnic, Khutri.
17. Government Polytechnic, Lathehar.18.
Government Women's Polytechnic, Jamshedpur.
19. Government Women's Polytechnic, Ranchi.20.
Govemro'?nt Women's Polytechnic, Bokaro.
21. Mines Institution, Dhanbad.22.
Mines institution, Bagha.23.
Mines Institution, Koderma.
24. Government Polytechnic, Dumka.
25. Government Women's Industrial School, Ranchi.26.
Government Women's Industrial School, Hazaribagh.27.
Government Women's Industrial School, Daltonganj.
28. Sainik School, Tilaiya.
29. Netarhat School.
30. Indira Gandhi Girls School. Hazariba2h.
The Bihar Reorganisation Act, 2000 47
NOTES ON SECTIONS'"
Section 2, sub-section (h)- According to 1991 census, the population of the
existing State of Bihar is 863.74Iakhs, the population of residuary State of Bihar is
about 645.30 lakhs and that of Jharkhand is 218.44 lakhs. The population ratio
between the States has been indicated as 645.30:218.44 on that basis.
Section 3 provides for the formation of the new State of Jharkhand by
transfer thcreto 18 districts of the existing State of Bihar.
Section 5 seeks to make consequential amendments in the First Schedule to
the Constitution.
Section 6 expressly saves the power of the State Government of successor
States to alter thereafter the name, area or boundaries of any district or other
territorial division within the State.
Sections 7 and 8 deal with the representation of Bihar and Jharkhand in the
Council of States (Rajya Sabha). At present there are 22 members representing the
existing State of Bihar in Rajya Sabha. Considering the population of the proposed
new State, it is proposed that 6 out of 22 seats may be allocated to Jharkhand. There
are, at present only 3 members representing the Jharkhand region. These members
along with three more members out of the remaining members (to be decided as
prescribed in the FirstSchedule) will be deemed to have been allocated to Jharkhand.
.Sections 9 and 11 deal with the representation of successor States; Bihar and
Jharkhand, in the House of the People. There are at present 54 members representing
the existing State of Bihar in the House of the People. The number of seats
proposed t'.J be allocated to Jharkhand is 14 and the remaining 40 members will
continue to represent the State of Bihar. Consequential amendments will be made
in the First Schedule to the Representation of the People Act, 1950.
Section 10 seeks to make modifications in the First Schedule to the Delimitation
of Parliamentary and Assembly Constituencies Order, 1976 in view of the formation
of the new State of Jharkhand and the transfer of certain territories from the
existing State of Bihar.
Sections 12 and 16- At present there are 324 elected members in the
Legislative Assembly of Bihar and one member is nominated under article 333 of
the Constitution. Out of 324 members, 243 members have been allotted to the
residuary State of Bihar and 81 members to the successor State of Jharkhand. The
nominated member may be deemed to have been nominated to the Legislative
Assembly of Jharkhand. The allocation of seats in this case also has been based on
the territorial location of the constituencies concerned. Necessary consequential
amendments have been made in the Second Schedule to the Representation of the
People Act, 1950.
Sections 17 to 20 and the Third and Fourth Schedules deal with the Legislative
Council of Bihar. At present there are 96 members in that Council. It is proposed
.Based on Notes on Clauses of the Bihar Reorganisation Bill, 2000, as introduced in Lok Sabha.
48 The Bihar Reorganisation Act, 2000
not to have any Legislative Council in the State of Jharkhand and the strength of
the Legislative Council of Bihar has ben reduced from 96 to 75.
The present term of MLC's representing Jharkhand region has been protected.
Suitable safeguards have been provided in the Third and Fourth Schedules also.
Sections 21 and 22 are meant to empower the Election Commission to
determine the reservation status of Assembly seats and the adjustments in
boundaries and description of the extent of Assembly and Parliamentary
Constituencies in both the successor States.
Sections 23 and 24 and the Fifth and Sixth Schedules- In view of the
formation of the new State of Jharkhand, amendments providing for the lists of
SCs and STs applicable foJ. Jharkhand are necessary in the Constitution (Scheduled
Castes) Order, 1950, and the Constitution (Scheduled Tribes) Order, 1950. Necessary
modifications have been set out in the Fifth and Sixth Schedules to the Bill.
Sections 25 to 37 deal with the provisions for separate High Courts for the
States of Bihar and Jharkhand, their powers and functions, jurisdiction and the
practice and procedure to bp followed by them.
Section 38- In orde! ~\at the administration of the new State of Jharkhand
can be carried on until the Legislature of that State has sanctioned expenditure
from the Consolidated Fund of that State, and passed the necessary Appropriation
Act, provision has been made in this clause for the Governor of Bihar to authorise
at any time before the appointed day such expenditure as he thinks necessary for
a period of six months from that date. A similar power is conferred on the Governor
of Jharkhand after the appointed day;
Section 39 contains the usual provision that the reports of the Comptroller
and Auditor -General of India for any period prior to the appointed day should be
submitted to the Governors of Bihar and Jharkhand and empowers the President
to take such further action as may be appropriate under the circumstances.
Section 40 seeks to empower the President to determine the share of the
States of Bihar and Jharkhand in the total amount payable to the existing State of
Bihar on- the recommendations of the Finance Commission constituted under
article 280 of the Constitution, in such manner as he thinks fit.
Sections 41 to 61 relate to apportionment of assets and liabilities of the State
of Bihar among the successor States and are guided by the following principles:-
(i) gOll\g by natural, cardinal principles of succession, all the assets and
liabilities should be apportioned in the ratio of population. The
particular assets and liabilities to be transferred should be identified
on considerations of nexus, proximity and expediency consistent with
the requirement that the successor States should have fully and
mutually exclusive executive/legislative control on all subjects having
a direct territorial nexus within their territories, all the physical assets
The Bihar Reorganisation Act, 2000 49
and liabilities, may not be suitable for allocation of financial assets and
liabilities which should preferably be allocated by overall valuation
and apportionment on the basis of population ratio. Further, the
financial assets in the nature of rights to receive moneys (whether by
way or arrears of tax or non-tax revenue or by way or recovery of
loans) are to be apportioned on considerations of territorial nexus
with the persons from whom the moneys are receivable. Other assets
and liabilities may be apportioned primarily on the basis of territorial
nexus, failing which on the basis of population.
(ii) the apportionment of assets and liabilities would be subject to such
financial adjustment as may be necessary to secure just, reasonable
and equitable apportionment of assets and liabilities amongst the
successor States.
(iii) all liabilities on account of Public Debt and Public Account of the
existing State of Bihar outstanding immediately before the appointed
day shall be apportioned in the ratio of population of the successor
States unless a different mode of apportionment is adopted under
specific provisions of this Act. The individual items of liabilities to be
allocated to the successor States and the amount- of contribution
required to be made by one successor State of another shall be such as
may be ordered by the Central Government in consultation with the
Comptroller and Auditor -General of India. nIl such orders are issued,
the liabilities on account of Public Debt and Public Account of the
existing State of Bihar shall continue to be the liabilities of the successor
State of Bihar. As an exception, the liability on account of loans raised
and re-lent by the predecessor Government to such entities as are
notified by the Central Government and whose area of operation is
confined to either of the successor States would devolve on the
respective States. .
(iv) any dispute regarding the amount of financial assets and liabilities
shall be settled through mutual agreement, failing }Vhich by order by
Central Government on the advise of the Comptroller and Auditor -
General of India.
(v) the outstanding Public Debt attributable to loans raised by the issue of
Government securities and held by (General) public is sought to be
retained in the books of Bihar (Successor) and Jharkhand is expected
to contribute its share of servicing and repayment of the debt. The
outstanding Public Debt attributable to loans received from Central
Government agencies and re-lent to other bodies in the State is sought
to be allocated on the basis of ultimate borrowers.
(vi) Subject to legislation by competent legislature, the successor States
would be entitled to receive benefits arising out of the decisions taken
50 The Bihar Reorganisation Act, 2000
by the predecessor State and the successor States would be liable to
bear the responsibilities and liabilities arising out of the decisions
taken by the predecessor State.
(vii) The liability of paying Retirement Benefits and Provident Fund balances
to employees should be allocated on the basis of permanent allocation
of the Government servants.
(viii) Contractual liabilities other than those of loans, guarantees, bank
balances, securities and other financial obligations are sought to be
allocated on the basis of the exclusive purpose of the contract or
through agreement.
(ix) The right to recovery of loans and taxes would vest in the State
according to the principal place of business / occupation of the loanee
or assessee. The liabilities to refund any tax or duty on property
including land revenue as also the right to collect arrears of tax or duty
on property including land revenue would be allocated on the basis of
the location of the taxed property.
(x) Items lying in suspense which are ultimately found to affect assets or
liabilities may be dealt with according to the allocation of that asset/
liability.
(xi) The liability on account of loans raised from any source and re-lent by
the existing State of Bihar to such entities as are notified by the Central
Government and whose area of operation is confined to either of the
successor States shall devolve on the respective States.
(xii) The balances in the Reserve Funds in the Public Account of Bihar
created wholly out of appropriations from the Consolidated Fund of
Bihar, to the extent the balances have not been invested outside
Government account should not be carried forward to similar Reserve
Funds in the Public Account of Bihar and Jharkhand.. The securities
held in respect of investments made from Cash Balance Investment
Account or from any fund in the Public Account of Bihar shall be
apportioned in the ratio of population of the successor States.
Section 62 enables the Bihar State Electricity Board, Bihar State Road Transport
Corporation and the Bihar State Warehousing Corporation to continue to function
in the same ar~as as at present, even after the formation of the State of Jharkhand,
i.e., on or after the appointed day. As and when the State of Jharkhand and the
residuary State of Bihar set up their own Electricity Board, Road Transport
Corporation, and Warehousing Corporation, etc., the existing entities will be
dissolved and their assets and liabilities shall be transferred to the corresponding
new entities in a manner specified in the Act.
Section 63 empowers the Central Government to give direction to the State
Government or other Authority concerned to ensure continuance of arrangements
of supply of electric power and supply of water.
The Bihar Reorganisation Act, 2000 51
Section 64 contemplates that the existing Bihar State Financial Corporation
will continue to function in the same areas as at present, even after the appointed
day» until a scheme is framed in this behalf for the reconstitution, reorganisation or
dissolution of the corporation, including proposals regarding the formation of new
corporations and transfer thereto of all the assets, right and liabilities of the
existing corporation. Such a scheme has to be approved at a general meeting of all
the shareholders and sanctioned by the Central Government. In case of
disagreement, the Central Government may refer the scheme to a Judge of the
High Court of Bihar or Jharkhand whose decision thereon shall be final.
Section 65 provides for continuance of functioning on and from the appointed
day of the Companies specified in the Ninth Schedule, in the areas in which they
were functioning before the appointed day and until otherwise provided for in any
law, or in any agreement among successor States or in any direction of the Central
Government including those for division of interests and shares in the Companies
between successor States, or reconstitution of the Board of Directors so as to ensure
adequate representation to the successor States. Therefore, there would be no need
to go to the High Court for reconstitution of companies as otherwise required
under the Companies Act, 1956.
Section 66 specifies that in case any body corporate become an inter-State
Corporate body, the same shall continue to function and operate subject to directions
as may be issued by the Central Government, until any other provision is made by
law in respect of the said body corporate.
Section 67, inter alia, protects the rights of existing road transport permit
holders. Any permit holder or undivided Bihar would not be required to again get
it countersigned by the State Transport Authority or the successor States for use
within the validity period. However, Central Government can give directions in
this regard. if necessary.
Section 68 contemplates that in case terms and conditions of service of an
existing workman do not change to his disadvantage in the event of his absorption
in any State organisation consequent to reorganisation, he would not be entitled to
any compensation under the Industrial Disputes Act, 1947.
Section 69 Under Section 24 of the Indian Income Tax Act, 1924, an assessee
who sustains a loss of profits or gains is entitled to have the amount of loss set off
against his income under certain circumstances. It is proposed to extend the benefit
of this section to a body corporate to which the assets, rights and liabilities of any
existing body corporate, including any loss sustained by it, are transferred under
the provisions of Part VII.
Section 70 provides that facilities in certain State Institutions as listed in the
Tenth Schedule will continue to be available to both the successor States for such
period as may be agreed upon between the two State Governments.
Sections 71 to 77 concern provisions relating to Services, Section 71 provides
for creation of two separate cadres for the State of Bihar and the new State of
52 The Bihar Reorganisation Act, 2000
Jharkhand for the All India Services, in place of the existing cadre of Bihar in
respect of these three services. It also confers power on the Central Government to
determine the strength and composition of the new cadres and allocate individual
officers thereto in consultation with the State Governments ..:oncerned. Sections 72
to 74 provide for allocation of officers, etc., serving under Ute Government of Bihar
between the States of Bihar and Jharkhand. Section 77 provides that the Public
Service Commission of existing State of Bihar would serve the successor State of
Bihar after the appointed day. The new State of Jharkhand can constitute its own
Public Service Commission under the provisions of Article 315 of the Constitution
of India.
Section 78 envisages that all rights and liabilities relating to water resources
projects be the rights and liabilities of the successor States by agreement entered
into by such States after consultation with the Central Government and if no
agreement is reached within two years of the creation of the two States then the
Central Government may determine within one year, having regard to the purpose
of the projects. The rights and liabilities will include the right to receive and utilise
the water available for distribution and to utilise the power generated as a result
of such projects.
Section 79 provides for the construction of the Ganga and Sone Management
Board for administration, construction, maintenance and operation of water
resources projects relating to river systems mentioned in section 78, for irrigation,
power, water supply, etc., this section also provides that the Chairman shall be
appointed by the Central Government besides giving the composition and functions
of the Board.
Section 80 provides for the manner of staffing, protection of terins and
conditions of emplqyment of staff after reorganisation of the State of Bil)ar, share
of the States in management cost, delegation of powers and power of Central
Government to give directions to the Board for efficient f1.H1ctioning.
Section 81 defines the jurisdiction of the Board and further provides that any
question on jurisdiction shall be referred to the Central Government for decision
thereon.
Section ~2 provides for regulation making powers to the Board consistent
with the Act and rules made thereunder.
Sections 83 to 92 are of miscellaneous and legal nature and they generally
follow the corresponding provisions of the States Reorganisation Act, 1956.